Capital Insight Acquires Hudson Yards Hotel Property in Foreclosure Auction

Capital Insight, an investment banking business, has acquired the 12-story property located at 511 Ninth Avenue in Manhattan's Hudson Yards. The acquisition, valued between $68 million and $71.3 million, occurred via a foreclosure auction. Capital Insight, which previously held the debt on the property, took ownership after the former developer, Assa Properties, encountered financial difficulties, leading to the site entering special servicing under CW Capital Asset Management.

The building, originally planned by Assa Properties as a combined hotel-multifamily development known as Galerie515 Hotel & Condominium Residences, began construction in 2012. The hotel component, Cassa Hotel Times Square, ceased operations in 2020. A new steakhouse, Vida Steakhouse, is slated to open in the retail space next year, though its lease status under the new ownership remains uncertain. This acquisition highlights the ongoing shifts in the commercial real estate market, particularly for distressed assets, and presents a new opportunity for Capital Insight to manage a cash-flowing asset with its six commercial condominiums.